Looking to maintain civic solvency and further improve what is now a positive financial standing, the Cadiz City Council could be on the brink of increasing a pair of stagnant tax rates.
During Thursday evening’s special-called session, council members approved what is just the first reading of a four-tenths percent increase on the payroll tax from 1.5% to 1.9%, and an increase of the insurance premium tax from 6% to 8%.
Outgoing City Clerk Barbie Johnson, who recently accepted a position with Western State Hospital in Hopkinsville, said her office had reviewed a “couple of different averages.” A potential payroll increase would cost citizens and employers between three cents and six cents per hour monthly — in what would be a range anywhere from $5.23 per month to $9.70 per month.
If passed on next reading, she said the increase would bring the city around $300,000 in revenue annually.
Several council members noted that the cost of local goods, namely groceries and the like, do remain uncomfortable.
However, Johnson laid out several stark realities for the city:
1) Prior to her summer 2021 hiring, the City of Cadiz had to take out a $300,000 loan to make payroll;
2) A major sewer project at the five-way stop along Lafayette Street, that connects to the Trigg County School District, will soon come due;
3) And other city water/sewer projects — including another lift station — are direly needed.
Payroll taxes have not seen an increase since 2008.
Johnson also noted that a 2% increase on insurance premium tax would generate roughly $66,000 annually, and it hasn’t seen an increase since 2009.
Mayor Todd King noted that a litany of problems, particularly from the school district, could come to the city’s doorstep if there wasn’t a tax increase.
But it isn’t just the school’s needs on the table. King added that a pair of new or lightly-used vehicles for the Cadiz Police Department, as well as for the Public Works Department, have been on hold for some time.
Johnson stated these two specific ordinances were originally drafted and discussed in 2021, but both were shelved until the proper time.
With growth and development coming all over the city, officials believe this is that proper time. Susie Hendricks prompted this conversation.
By comparison, Murray is at 1%, Princeton is at 1.5%, Paducah is at 2%, Todd County is at 1%, Hopkinsville is at .02%, Eddyville is at 1.5%, and Mayfield is at 2%.
Full Tax Discussion:
